Existing home sales in February were up 1.2%, to an annual rate of 4.88 million units, slightly below expectations.

European markets, except a 0.2% higher FTSE, lost between 0.5%-1.2% with Greece in the spotlight as Greek and German leaders meet amid tensions over Athens’ bailout program.

AT HOME

After opening higher by nearly four tenth of a percent, benchmark indices fell about two third of a percent from the top of the day to end lower by a fifth of a percent. Sensex lost 53 points to settle at 28208 while Nifty finished at 8551, down 20 points. BSE mid-cap and small-cap indices lost 0.8% and 1.3% respectively. BSE IT and Teck indices lost 1% and 0.9% respectively, becoming top losers among the sectoral indices while Metal and Auto indices gained 0.2% and 0.1% respectively.

Ever since Nifty broke 8670, we have been working with downside target of 8540 and 8404, which are the 50% and 61.8% retracement levels of the entire 7961-9119 upmove. Yesterday, the benchmark touched a low of 8540 before closing at 8550, achieving the first target mentioned above.

Today’s lower opening would see Nifty breaching 8540 mark and moving towards the 8404 target. Before that 8470, the bottom made in February, would be the intermediate target.

Traders are advised to hold short positions with the stop loss of 8650, which is the immediate resistance on the hourly chart.